Scentre Group Posts $29.5 Billion in Sales, Confirms 4.3% Earnings Growth
Scentre Group reports rising customer visits and strong sales growth across its Westfield portfolio, while confirming its 2025 earnings and distribution targets.
- Customer visitation up 3.1% to 453 million
- Business partner sales reach $29.5 billion, up $760 million
- Portfolio occupancy at 99.8%, highest in recent years
- Completed major redevelopments at Westfield Burwood and Southland
- Reconfirmed 2025 FFO guidance of 22.75 cents per security
Strong Foot Traffic and Sales Growth
Scentre Group, the owner and operator of 42 Westfield shopping centres across Australia and New Zealand, has delivered a robust operating update for 2025. Customer visitation to its destinations rose by 3.1% to 453 million visits over 45 weeks, reflecting sustained consumer engagement despite broader retail challenges. This foot traffic translated into a notable $29.5 billion in business partner sales for the year to September, an increase of $760 million compared to 2024.
Leasing and Occupancy at Near-Record Levels
Demand for retail space remains exceptionally strong, with portfolio occupancy climbing to 99.8%, up 40 basis points year-on-year. The group completed 2,366 leasing deals, achieving specialty rent escalations averaging 4.4% and releasing spreads of +3.0%. This leasing momentum underscores the attractiveness of Westfield centres to a diverse range of retailers and service providers.
Strategic Redevelopments and Member Growth
Scentre Group continues to invest heavily in enhancing its retail environments. The recent completion of the $48 million redevelopment at Westfield Burwood introduced major brands such as ALDI, JB Hi-Fi, Nike, and Rebel, while the $72 million upgrade at Westfield Southland added family-friendly dining and entertainment precincts. Additionally, the launch of a health and wellness precinct at Westfield Bondi, featuring a Virgin Active social wellness club, signals a strategic pivot towards lifestyle experiences. The Westfield membership program also expanded by 600,000 members to over 4.8 million, further driving customer loyalty and visitation.
Capital Management and Market Confidence
On the capital front, Scentre Group successfully issued $1 billion in 10-year senior notes domestically and €500 million in 8-year senior notes in Europe, marking a return to the European debt market. These moves diversify the group’s funding sources and support ongoing investment in its portfolio.
Outlook and Guidance
Looking ahead, Scentre Group reconfirmed its funds from operations (FFO) target of 22.75 cents per security for 2025, representing 4.3% growth, alongside a 3.0% increase in distributions to 17.72 cents per security. This guidance reflects confidence in the group’s operational momentum and the resilience of its retail assets amid evolving consumer trends.
Bottom Line?
Scentre Group’s strong operational performance and strategic investments position it well for sustained growth, but market watchers will keenly observe execution risks and consumer sentiment shifts.
Questions in the middle?
- How will evolving consumer preferences impact specialty retail sales in 2026?
- What is the potential effect of rising interest rates on Scentre Group’s capital costs?
- Can the group maintain high occupancy amid increasing competition from online retail?
